The Government of Newfoundland and Labrador is today questioning the Federal Government's commitment to the future of the fishery in the province following a significant funding announcement for the fishery in British Columbia. On Monday, the federal Minister of Fisheries and Oceans, the Honourable Loyola Hearn, announced that the Federal Government will spend $175 million over five years to support environmentally and economically sustainable and integrated fisheries in the Province of British Columbia.

Since February of 2006, the Federal Government has participated in a Fishing Industry Renewal process with the Government of Newfoundland and Labrador. Though there were positive policy changes announced by the Federal Government, along with some money for issues peripheral to the renewal process, there was no where near the level of federal funding committed for the Newfoundland and Labrador fishery as was just announced for B.C. The Provincial Government, on the other hand, announced approximately $140 million in commitments as a part of the joint announcement.

"Our government is pleased to see the Federal Government recognizing the needs in the British Columbia fishery and we applaud the financial support they are receiving in that province," said the Honourable Trevor Taylor, Acting Minister of Fisheries and Aquaculture. "However, we are at a loss as to why the federal minister would treat both provinces so differently."

After a lengthy joint Fishing Industry Renewal process, the Federal Government�s contribution to the Canada-Newfoundland and Labrador Fishing Industry Renewal Strategy was mostly policy measures centred on fleet rationalization and the protection of the inshore fleet. They also announced $19.5 million for fisheries science in Atlantic Canada, including $9 million for the refit of a science vessel, and re-announced capital gains exemptions for fisherpersons. All of these items, other than the policy initiatives, are only tenuously linked to the Fishing Industry Renewal initiative.

"While these are important steps for the future of our fishery, the Federal Government told us at that time they were unable to commit any funding to other important issues in the fishery in Newfoundland and Labrador, such as early retirement. Then we see the federal minister announcing substantial money for another provincial fishery, including for licence buy-outs in B.C. This simply does not make sense and certainly seems unfair to the industry in our province," said the minister.

Like the approach taken as part of the Fishing Industry Renewal process in Newfoundland and Labrador, the British Columbia announcement referred to the "ocean to plate" approach. This refers to a seafood sector in which all stakeholders, including government agencies and those involved in all levels of the seafood sector value chain, are working toward a common goal of a sustainable, economically-viable and internationally-competitive industry.

"It is surprising that since the B.C. announcement is advocating an approach that is so similar to the one developed in this province, that the British Columbia fishery would receive so much funding, while this province would receive very little financial resources," said Minister Taylor.

"Our government has been a leader in this country to address the challenges of Fishing Industry Renewal with the Federal Government. It is unfortunate that the Federal Government did not see the Newfoundland and Labrador fishing industry as important enough to provide significant financial resources to address those issues in cooperation with our Provincial Government," said Minister Taylor. "However, these issues are a priority for the Williams Government and we will continue to provide as much investment as possible, with or without the financial support of the Federal Government."

Minister Taylor called upon Minister Hearn to explain to the fishing industry in Newfoundland and Labrador the difference between the approach taken by the Federal Government in this circumstance.

"The Federal Government took control of our fishery when we entered Confederation and the results have been the decimation of stocks to the point of commercial collapse for particular species," said Minister Taylor. "Yet at a time when we are attempting to renew and revitalize the industry, it is the province that has stepped up with money while the Federal Government provided very limited financial resources. This is in addition to other broken commitments to this province by the Federal Government which will result in billions of dollars of lost revenue, not to mention the fact that custodial management � though promised by the Federal Government � has never been realized. This practice of the province stepping up financially while the Federal Government skirts their responsibility is not acceptable."

"The Federal Government says it is responding to the wishes of the B.C. fishery," said the minister. "One of the wishes of our province is to have custodial management for our fishery. This was a key piece of the last federal election campaign and it seems to have been forgotten about. Minister Hearn made great promises and failed to deliver on both an acceptable level of funding for Fishing Industry Renewal Strategy in this province and custodial management."

As part of the joint Federal-Provincial Fishing Industry Renewal Strategy, the Government of Newfoundland and Labrador announced $15 million in direct program funding. Budget 2007 included $5 million in total for enhanced marketing, research and development initiatives, occupational health and safety initiatives and the implementation of fish auctions. Other initiatives of the total $140 million Fishing Industry Renewal commitments by the province included an estimated $100 million loan guarantee program and approximately $25 million to fund the province�s share of the capital gains exemptions that were announced for harvesters.

Also as part of the Fishing Industry Renewal Strategy, the Provincial Government will provide adjustment support measures should fish plants close permanently. This will include a comprehensive suite of counseling, training and adjustment measures to assist during the transition period. To this end, a total of $850,000 was allocated for the workforce adjustment program in Budget 2007. In total, the Provincial Government allocated $2.55 million for this initiative, over the next three years.

Media contact:
Lori Lee Oates
Director of Communications
Department of Fisheries and Aquaculture
709-729-3733, 690-8403
oatesll@gov.nl.ca

2007 07 18                                                    4:10 p.m.